• Source:JND
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EPFO Interest Rate: The Employees Provident Fund Organisation (EPFO) on Saturday again hiked the interest rate on employees' provident fund (PF) deposits to 8.25 per cent for 2023-24. This is the second hike in interest rate since March when the retirement fund body increased the interest rate on EPF marginally to 8.15 per cent for 2022-23 from 8.10 per cent in 2021-22.

With the recent hike, the EPF interest rate reached a three-year high, after it was hiked to 8.50 per cent in 2020-21. In March 2022, EPFO lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent for its over six crore subscribers. This was the lowest since 1977-78 when the EPF interest rate stood at 8 per cent.

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"The EPFO's apex decision making body Central Board of Trustees (CBT) has decided to provide 8.25 per cent rate of interest on EPF for 2023-24 at its meeting on Saturday,” PTI quoted a source as saying. The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by CBT in March 2021.

After the CBT's decision, the interest rate on EPF deposits for 2023-24 will be sent to the Ministry of Finance for concurrence. After the government's ratification, the interest rate on EPF for 2023-24 will be credited into accounts of over six crore subscribers of EPFO. EPFO provides the rate of interest only after it is ratified by the government through the finance ministry.

In March 2020, EPFO lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent provided for 2018-19. EPFO had provided an 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.

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The retirement fund body had given an 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. The rate of interest was 8.25 per cent in 2011-12.

 

(With PTI Inputs)